Mr. Lynch (for
himself and Mr. Cummings) introduced
the following bill; which was referred to the
Committee on Oversight and Government
Reform

A BILL

To amend the provisions of title 5, United States Code,
relating to the methodology for calculating the amount of any Postal surplus or
supplemental liability under the Civil Service Retirement System, and for other
purposes.

1.

Short title

This Act may be cited as the
United States Postal Service Pension
Obligation Recalculation and Restoration Act of
2011.

2.

Modified
methodology

(a)

In
general

Section 8348(h) of
title 5, United States Code, is amended by adding at the end the
following:

(4)(A)

To the extent that a
determination under paragraph (1), relating to benefits attributable to
civilian employment with the United States Postal Service, is based on any
provision of law under subparagraph (C), such determination shall be made in
accordance with such provision and any otherwise applicable provisions of law,
subject to the following:

(i)

The average pay used in
the case of any individual shall be a single amount, determined in accordance
with section 8331(4), taking into account the rates of basic pay in effect for
such individual during the periods of creditable service performed by such
individual. Nothing in this subsection shall be considered to permit or
require—

(I)

one determination of average pay
with respect to service performed with the United States Postal Service;
and

(II)

a separate determination of
average pay with respect to service performed with its predecessor entity in
function.

(ii)

To determine the portion of an
annuity attributable to civilian employment with the United States Postal
Service, the appropriate percentage to apply under any provision of law under
subparagraph (C) with respect to such employment is, in the case of—

(I)

any period of employment with the
United States Postal Service which follows

(II)

any other period of employment
creditable under section 8332 (whether with the entity referred to in clause
(i)(II) or otherwise),

the
applicable percentage under such provision, determined after taking into
account any periods of employment described in subclause (II) which precede the
period of employment (described in subclause (I)) as to which the determination
of the appropriate percentage to apply under such provision is being
made.(B)(i)

Not later than the date
which occurs 6 months after the date of enactment of this paragraph, the Office
shall determine (or, if applicable, redetermine) the amount of the Postal
surplus or supplemental liability as of the close of the fiscal year most
recently ending before such date of enactment, in conformance with the
methodology required under subparagraph (A).

(ii)(I)

If the result of the determination (or
redetermination) under clause (i) is a surplus, the Office shall transfer the
amount of such surplus to the Postal Service Retiree Health Benefits Fund
within 15 days after the date of such determination (or
redetermination).

(II)

If a determination under clause (i) is made
before a determination under paragraph (2)(B) is made with respect to the same
fiscal year, no determination shall be made with respect to such fiscal year
under paragraph (2)(B).

(C)

The provisions of law under this
subparagraph are—

(i)

the first sentence of section 8339(a);
and

(ii)

section 8339(d)(1).

(5)

For purposes of this subsection—

(A)

the term Postal Service Retiree
Health Benefits Fund refers to the fund described in section 8909a;
and

(B)

the term Postal Service
Fund refers to the fund described in section 2003 of title
39.

.

(b)

Coordination
provisions

(1)

Section 8909a of title
5, United States Code, is amended by adding at the end the following:

(e)

Notwithstanding any other provision of law,
the amount payable by the Postal Service under subsection (d) in any fiscal
year ending on or before September 30, 2021, shall be determined as if section
2(a) of the United States Postal Service
Pension Obligation Recalculation and Restoration Act of 2011 had
never been
enacted.

.

(2)

Nothing in this Act shall affect the
amount of any benefits otherwise payable from the Civil Service Retirement and
Disability Fund to any individual.

(c)

Technical
amendment

The heading for
section 8909a of title 5, United States Code, is amended by striking
Benefit and inserting
Benefits.

3.

Additional
provisions

(a)

In
general

Section 8348(h)(2) of
title 5, United States Code, is amended by adding at the end the
following:

(F)

Notwithstanding any other provision of this
subsection, for purposes of determining the Postal surplus or supplemental
liability for each of fiscal years 2016, 2017, 2018, 2019, and 2020, any
determination under paragraph (1) shall be made by disregarding paragraph
(4)(A) and by instead applying the methodology that was used to carry out this
paragraph with respect to the fiscal year preceding the fiscal year referred to
in paragraph
(4)(B)(i).

.

(b)

Relating to a
postal surplus

Section 8348(h)(2)(C) of title 5, United States
Code, is amended—

(1)

by inserting
2021, after 2015,; and

(2)

by striking
if the result is and all that follows through
terminated. and inserting the following:

if the result is a
surplus—

(i)

that amount shall be transferred—

(I)

to the Postal Service Retiree
Health Benefits Fund, except as provided in subclause (II); and

(II)

if the surplus is for fiscal year
2021 or a subsequent fiscal year, to the Postal Service Fund; and

(ii)

any prior amortization schedule for
payments shall be
terminated.

.

4.

Treatment of certain
surplus retirement contributions

Section 8423(b) of title 5, United States
Code, is amended—

(1)

by redesignating
paragraph (5) as paragraph (6); and

(2)

by inserting after
paragraph (4) the following:

(5)

If, for fiscal year 2010, the amount
computed under paragraph (1)(B) is less than zero (in this section referred to
as surplus postal contributions), the amount of those surplus
postal contributions shall be transferred—

(A)

to the Postal Service Retiree Health
Benefits Fund to pay any liability to the Postal Service Retiree Health
Benefits Fund for fiscal year 2011;

(B)

if all liability to the Postal Service
Retiree Health Benefits Fund for fiscal year 2011 has been paid, to the
Employees’ Compensation Fund (as established under section 8147); and

(C)

if all liability of the United States
Postal Service to the Employees’ Compensation Fund (as so established) has been
paid, to the United States Postal Service for the repayment of any obligation
issued under section 2005 of title
39.

.

5.

Effective
date

(a)

In
general

This Act and the
amendments made by this Act shall take effect on the date of enactment of this
Act.

(b)

Intent of
Congress

It is the intent of Congress that this Act apply with
respect to the allocation of past, present, and future benefit liabilities
between the United States Postal Service and the Treasury of the United
States.